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Lauren Entertainment, Inc., has an 18 percent annual growth rate compared to the market rate of 8 percent. If the market multiple is 18, determine
Lauren Entertainment, Inc., has an 18 percent annual growth rate compared to the market rate of 8 percent. If the market multiple is 18, determine P/E ratios for Lauren Entertainment, Inc., assuming that its beta is 1.0 and you feel it can maintain its superior growth rate for the next:
Case 1: 10 years.
Case 2: 5 years.
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